I hear what you are saying. It is a balancing act. No one wants to have pets killed or injured. But trapping the coyotes just because they are close to human populations is not a viable solution. (The state does not have the financial or manpower resources do this anyway). The coyotes, like all wildlife, have a place in the web of life. Because they are predators, there is a natural reaction to be scared of them. But there are over 30,000 coyotes in Illinois. Most have a healthy fear of humans. And most of them will never cause an incident. The coyotes were obviously interested in the German Shepard. But if they had negative intent, they would not have been standing around, they would have attacked the dog. The tricky part is that most people are not trained to know the behaviors of coyotes. Just seeing them around can be perceived as being threatening, but coyotes can and do live peaceably in and near our neighborhoods. However, without seeing the coyotes' behavior myself, I can't say if they were just interested in the dog, or if they are starting to test. If this is happening a lot, and the neighbors are worried that the coyotes are acting aggressively and need to be removed, there are licensed Nuisance Wildlife Control Operators who can trap and euthanize the coyotes. They do charge a fee for this service. It would be better to do this prior to pups being born.